Suppose Losses Cause Industry X to Contract And, as a Result

question 86

Multiple Choice

Suppose losses cause industry X to contract and, as a result, the prices of relevant inputs decline. Industry X is

• A) a constant-cost industry.
• B) a decreasing-cost industry.
• C) an increasing-cost industry.
• D) encountering X-inefficiency.

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Definitions:

Marginal Revenue Product

This term refers to the additional revenue generated from using one more unit of input, illustrating the contribution of that unit to the total output's revenue.

Last Unit

Refers to the final item or unit produced or consumed, which can be significant in determining the marginal cost or utility.

Labor Employed

The total number of workers who are currently hired and working in a given sector or economy.

Marginal Resource Cost

The cost of producing one additional unit of a resource or input.